Silicon Laboratories Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended

September 30,
2017

October 1,
2016

Operating Activities

Net income

$  51,944

$  41,385

Adjustments to reconcile net income to cash provided by operating activities:

   Depreciation of property and equipment

11,068

9,912

   Amortization of other intangible assets and other assets

20,531

21,461

   Amortization of debt discount and debt issuance costs 

6,984

--

   Stock-based compensation expense

33,007

30,057

   Income tax shortfall from stock-based awards

--

(1,611)

   Deferred income taxes

(5,703)

(1,460)

   Changes in operating assets and liabilities:

      Accounts receivable

(1,587)

(11,322)

      Inventories

(13,196)

(1,558)

      Prepaid expenses and other assets

23,506

7,404

      Accounts payable

1,746

1,280

      Accrued expenses

9,720

8,930

      Deferred income on shipments to distributors

11,039

11,573

      Income taxes

(424)

1,459

      Other non-current liabilities

(7,269)

(10,891)

Net cash provided by operating activities

141,366

106,619

Investing Activities

Purchases of available-for-sale investments

(471,938)

(131,741)

Sales and maturities of available-for-sale investments

143,765

129,511

Purchases of property and equipment

(10,494)

(8,545)

Purchases of other assets

(2,622)

(4,994)

Acquisition of business, net of cash acquired

(13,658)

--

Net cash used in investing activities

(354,947)

(15,769)

Financing Activities

Proceeds from issuance of long-term debt, net

389,468

--

Payments on debt

(72,500)

(5,000)

Repurchases of common stock

--

(40,543)

Payment of taxes withheld for vested stock awards

(14,870)

(10,148)

Proceeds from the issuance of common stock

6,836

8,451

Payment of acquisition-related contingent consideration

--

(9,500)

Net cash provided by (used in) financing activities

308,934

Increase in cash and cash equivalents

95,353

34,110

Cash and cash equivalents at beginning of period

141,106

114,085

Cash and cash equivalents at end of period

$236,459

$148,195